Sunday, September 30, 2007.US: How to escape the arbitration trapWrite your congressmen about the Arbitration Fairness Act of 2007; this legislation applies to consumer contracts which includes house purchases.

Sunday, September 30, 2007.US: "HOA Primer"Homeowner's info and links, book, about problems of living in a neighborhood with a Home Owners Association.

Sunday, September 30, 2007.NY: Contractor sues legislator and countyBaumblit Construction claims defamation because county said his work didn't pass code, and legislator tried to help constituent who had problem with the shoddy builder.

Sunday, September 30, 2007.NJ: One year laterUpdate on Kara Homes bankruptcy, co. now called Maplewood.

Sunday, September 30, 2007.Charlotte Observer: Home loans were ill-fatedUnsound lending practices coupled with builders contributing to down payments. (In earlier news stories dating back to 2006 it was noted by the IRS that some down payments "gifts" are hidden fees, possibly illegal, and lead to higher foreclosures.)

Sunday, September 30, 2007.Charlotte Observer: Home buyer blames himself and othersTurned down for financing at one place, buyer found willing builder/lender in Beazer Homes but it ended in foreclosure.

Saturday, September 29, 2007.Canada; of interest to U.S.: Holmes on Homes TV showTell your contractor story; home repair show

Saturday, September 29, 2007.ABC: Holmes on Homes on 20/20Less than 20% of contractors know what they are doing and some are outright crooks.

Friday, September 28, 2007.US: Beware the Arbitration TrapHere is what you can do to stand up to this corporate bullying from credit card and other companies: (Relevant to articles posted on arbitration yesterday and today. Article has links to take action.)

Thursday, September 27, 2007.FL: Housing Market Crashes and BurnsToday, the bankers and developers who were all over Homestead farmland like vultures on a dead python for zoning and building permits (and contributed their share of liar loan mortgages that triggered a world credit crisis) are in hiding. (Practically speaking, what that means is that they are on the phone with their Senators and Congressmen and the Bush White House, appealing for a bail-out by federal agencies or the government sponsored entities like Fannie Mae and Freddie Mac. Just you watch!)

Thursday, September 27, 2007.US: Cleaning Up the Fine PrintConsumers take it on the chin every day with hidden tricks and traps in credit card agreements, home mortgages, health insurance contracts, and dozens of other purchases. [Like houses and warranties!] Will Congress listen?

Thursday, September 27, 2007.US: Consumers often don't win in mandatory arbitrationPublic Citizen reviewed 34,000 arbitration cases in California -- the only state that requires companies to publicly disclose details of arbitration cases -- and found the decks are stacked against consumers.

Thursday, September 27, 2007.US: PDF File: The Arbitration TrapPublic Citizen's new report on the pitfalls of mandatory binding arbitration in consumer contracts. Please see our homepage for People Over Profits' link to ban these harmful clauses.

Wednesday, September 26, 2007.MT: Construction Fraud Increasing and Difficult to ProsecuteTru-Cut Builders had five complaints, was ordered to cease and desist, but homeowner still out the money: law enforcement ill equipped, too overburdened to tackle complicated economic fraud cases w/ layers of civil paperwork and assets hidden offshore.

Wednesday, September 26, 2007.PA: Hershey home builder closesShaffer & Son owned by John W. Yarnall and James G. O’Shea presently involved in three new home developments: Deer Run townhomes, Southpoint Meadows, Stone Hill townhomes. Home Builders Association advises customers w/homes under contract to get a lawyer.

Wednesday, September 26, 2007.US: A Mouse Trap for KB HomeKB Home must be trying to pull a rabbit out of a hat -- or mouse ears out of somewhere else. Its newly announced partnership with Disney to offer Disney-themed decor seems to show just how desperate the homebuilder is.

Wednesday, September 26, 2007.US: The Rot Within II In keeping with this week's theme, The Rot Within (week II), we've examined the rot within our legal system, Homeowners, Defective Houses and Big Builders: Justice Is Not Blind, and the intellectual hypocrisy/rot within our ruling ideology which claims to support free markets but hurries to feed at the public trough at the first signs of potential loss...

Tuesday, September 25, 2007.US: America's Watchdog looking for lawyersGroup says they have never seen bleaker climate for millions of consumers cheated by mortgage lender, bank, homebuilder... (Posted for info only, not endorsement.)

Monday, September 24, 2007.NJ: New Home Lemon Law pending in stateSenate bill 1890: This bill is part of a package of bills implementing the recommendations of the State Commission of Investigation in its report of March, 2005 entitled “The Good, the Bad and the Ugly: New-Home Construction in New Jersey.” The bill effectively creates a “lemon law” for new homes.

Monday, September 24, 2007.US: Real Estate DisasterThe third aspect of greed was massive appraisal fraud on the part of homebuilders, many of whom were also mortgage lenders. (From "America's Watchdog," posted for info, not an endorsement.)

Monday, September 24, 2007.US: Bernanke: The anti-Robin HoodCo's that should've gone out of business for acting irresponsibly whined for and got help at govt bailout trough. Rate cut may make things worse in long run.

Saturday, September 22, 2007.US: CtW Investment Group Urges Homebuilders to Address Compliance Failures11 homebuilders received letters (from CtW re: risky mortgage practices): Beazer, Centex, D.R. Horton, Hovnanian Enterprises, KB Home, Lennar, MDC Holdings, NVR, Pulte Homes, Ryland Group and Toll Brothers. In total, the 11 firms—eight of which have been sued by shareholders or homeowners this year—have lost $23 billion in value through the first eight months of 2007.

Saturday, September 22, 2007.US: CTW Investment group letter to BEAZER over losses: PDF fileBeazer Homes investors alone have lost $1.4 billion this year. Large
homebuilders, however, may not merely be casualties of the crisis; as a result of improper
business practices, particularly within their mortgage affiliates, several of the nation’s largest
homebuilders may, in fact, be complicit parties in causing the industry-wide collapse.

Saturday, September 22, 2007.MSN: Are we headed for an epic bear market?"Defaulting middle-class U.S. homeowners are blamed, but they are merely a pawn in the game," he says. "Those loans were invented so that hedge funds would have high-yield debt to buy."

Saturday, September 22, 2007.TX: Ryland employee sues homeownersSeveral homeowners in the new neighborhood in Live Oak had been protesting for months near the model homes

Friday, September 21, 2007.PA: Share Your Bad Builder Story in PennsylvaniaState Representative Frank Andrews Shimkus sponsoring legislation to hopefully protect consumers from bad builders after criminal home builder incident, (which other articles have identified as builder Scott Binsack whom we posted news about earlier this summer/fall). Share your story on PA House of Representaties site.

Friday, September 21, 2007.US: Mortgage meltdown marks false real-estate economyGreed, fraud, mis-representation to blame on lending side. As much as 15 percent of loans performed in last few years should have never been originated. Borrowers’ abilities to qualify were extremely marginal, lending world said, “Yes,” time and time again.

Friday, September 21, 2007.FL: UPDATE on Great Bay Homes fraud"A contractor can come up with a million legitimate excuses about why he didn't complete your house," Evans said. "The Legislature thought they were fixing the problem by requiring homebuilders to escrow a person's money and use it only for his house.

Friday, September 21, 2007.US: PDF on mortgage fraud; Builder fraud# 7.13 is on Builder Bailouts, a type of mortgage fraud, (not to be confused with a "bailout" by the govt. of the lenders/builders w/regard to the current mortgage mess)

Friday, September 21, 2007.TX; Nat'l interest: Builder Bailout SchemesMajor contributor to unoccupied homes and foreclosure signs; the new home builder... Builder bailouts occur when builder/developer is motivated to move property quickly in slow market. Following red flags may occur in builder bailouts: (article details essentially the way new homes are now being sold.)

Friday, September 21, 2007.MN: Three charged in multi-million dollar bank fraud scamAccording to prosecutors, here's how it worked: 10Spring would buy a property, find a straw buyer with good credit, mark up the value of the property, and then sell it to the straw buyer. The profits from that sale were split between the three co-conspirators in the scheme and the straw buyer.

Thursday, September 20, 2007.CA; Nat'l interest: Hard Money21st Century Mortgage, builders, foreclosures, possible fraud: "The dirty little secret of this industry is that builders don't have to put one penny of their own money into these projects."

Thursday, September 20, 2007.US: Let's fix this subprime messHere are four key reforms we need. (Good article but the "mortgage calculator" on pg. 2 still seems a bit on the optimistic/risky side. --Ed.)

Wednesday, September 19, 2007.US: Arbitration Fairness Act of 2007This legislation to make mandatory arbitration clauses in consumer contracts unenforceable is now before the House Judiciary Committee. You can contact members of the committee from this link, even if you are not their constituent. See also the People Over Profits link on our home pg. upper right.

Tuesday, September 18, 2007.US: Harvest time for Homebuilders115% year-over-year increase in foreclosures...Expect to see same desperate maneuver from Pulte, Toll, Ryland, Centex, D.R. Horton, Lennar and rest of crew that spent past half-decade overbuilding for a world of cheap money, bad loans, greedy flippers.

Tuesday, September 18, 2007.AZ; Nat'l interest: A House Divided part 1 & 2Exposing New Home Builders blog has nicely summed up CNN's videos of unstable new houses.

Tuesday, September 18, 2007.US: Let's point fingers at subprime's real villainsAs early as 2003, a number of economists were warning of a housing bubble...only way to go forward is to flush it out, take the loss and move forward, not bring it back.

Monday, September 17, 2007.WI; Nat'l interest: Mandatory arbitration not always fair fight The case was decided by construction professionals, all of them members of the builders association. (Builder: builder, Robert Henderson.) Sen. Russ Feingold (D-Wis.) and Rep. Hank Johnson (D-Ga.) introduced (federal) legislation that would make mandatory arbitration clauses in many contracts unenforceable. (Arbitration Fairness Act of 2007.)

Monday, September 17, 2007.National Association of Home Builders: PDF File: Legislative and Regulatory PolicyLarge PDF outlining the building industry's agenda for laws concerning housing. Thanks to our TN HADD rep for providing this. She cautions that it may be upsetting for some viewers. --Ed.

Monday, September 17, 2007.MD; Nat'l interest: Customer’s Web site sparks suitGemcraft Homes Inc., along with its CEO, vice president and several employees, filed a complaint in Baltimore City Circuit Court seeking $8 million in compensatory damages and $24 million in punitive damages against customer Erik G. Levy. (homeowner's site is: www.bewareofgemcraft.com If a homeowner asked for these type damages they'd be called "sue-happy," and accused of filing frivolous actions. --Ed.)

Monday, September 17, 2007.US: What Will the Anticipated Rate Cut Really Change?A rate cut can’t save the housing market ... if saving the housing market means returning us to 2005, how is that a good thing, if housing prices and the factors driving them up were unsustainable?

Monday, September 17, 2007.US: Beazer Homes Reduces Credit Facility Mortgage subsidiary of homebuilder reduced amount it can borrow under mortgage warehouse line of credit, according to Securities and Exchange Commission.

Saturday, September 15, 2007.OH: Akron man accused of participating in mortgage fraud scheme Mortgage brokers, loan officers and builders worked together to defraud lenders. They submitted bogus documents to inflate the value of homes in order to get loans and cash (Click on PRINTER version to read if article is not showing up properly.)

Saturday, September 15, 2007.FL; NJ: UPDATE: on missing real estate broker w/ties to builderD'Alessandro is named in numerous lawsuits in Florida accusing his brokerage firm, Gates, D'Alessandro & Woodyard of engaging in real estate fraud in the sale of properties in two housing developments in the Fort Myers area. The lawsuits name other defendants, including the developer of the homes, First Home Builders, a subsidiary of K. Hovnanian Inc.

Thursday, September 13, 2007.NJ: UPDATE on Kara Homes bankruptcyFishman and Plainfield Specialty Holdings II Inc., a Greenwich, Conn.-based hedge fund, will take control. New name of Kara to be Maplewood.

Wednesday, September 12, 2007.CS Monitor: Govt regulation makes a comebackCapitalism is partly based on the thesis that the self-interest of entrepreneurs, managers, and workers combine to produce the most good for a nation. But when thinking shifts into the extreme "greed is good" mode, the impact can be damaging.

Wednesday, September 12, 2007.MI: War of WordsBuilders, residents, officials in skirmish over zoning

Wednesday, September 12, 2007.US: What if we could stop some foreclosure nightmares?Robert J. Wright founder of msfraud.org ... “many foreclosures could have been avoided had borrowers been aware of accounting errors and fraud going on with their loan servicing.”

Wednesday, September 12, 2007.US: Mortgage Liability Issue to Hit CongressBanks that package mortgage securities - and institutional investors who buy them - fearful that lawmakers could in future make them legally responsible for fraud committed by lenders.

Wednesday, September 12, 2007.PA: Contractors Arrested For Fraud"I never ever expected I would be conned out like this. I thought I was a smart lady. I always did my homework," said Dr. Stella Ebo. It's a story that's being told again and again. Investigators say the Salvatico brothers ripped off 13 homeowners in Bucks and Philadelphia counties, cheating them out of a half-million dollars.

Wednesday, September 12, 2007.US: Arbitration: How arbitrators are pressured to do what big business wantsJAMS, a large national arbitration provider, announced it would not necessarily enforce bans on class actions that are common in arbitration clauses. At least 2 credit card companies, Chase and Discover, have now amended cardholder agreements to remove JAMS from list of arbitration providers they will use. As other companies follow, this will put enormous pressure on JAMS to its change position.

Wednesday, September 12, 2007.US: Beazer turns to court to keep creditors at bayBeazer appears to be caught in ever-tightening spiral of secrecy and denial that has hammered creditors' faith. ... Court's intervention could have far-reaching effects, allowing other troubled companies to withhold potentially damaging internal data from investors.

Wednesday, September 12, 2007.US: NVR, Ryan Homes face RESPA suit, mortgage questions From RESPAnews.com: Ryan Homes is on the proverbial hot seat in light of a RESPA lawsuit accusing NVR Mortgage Finance Inc., its mortgage subsidiary, of illegally coercing homebuyers into using its services. This case comes on the heels of an altercation over NVR’s mortgage practices that drew national ...

Tuesday, September 11, 2007.US: Law firm article on Arbitration Fairness Act of 2007Corporations have figured out that simply by inserting an arbitration clause in contracts for everyday consumer goods and services or employment, they can usually evade accountability for any harm they cause or laws they break

Tuesday, September 11, 2007.US: 9 Reasons to ban mandatory arbitrationMandatory binding arbitration is great for businesses to use in dealing with one another, but it sucks for consumers. Here's 9 ways you get screwed in arbitration...

Tuesday, September 11, 2007.US: The Disinformation SocietyAmerican media was mesmerized by amazing, supernatural rise of nominal house prices, and fantastic flow of paychecks from production home-builder's payroll offices

Tuesday, September 11, 2007.Mortgage 101: Barry Stone columnNo one should ever buy a new home without hiring a professional home inspector because all new homes have construction defects

Monday, September 10, 2007.NC: Insurance Commissioner Hammers Regulators for Tougher Coastal Building Codes“Homebuilders and developers balk at adding any codes that require them to do more or spend more during construction, but that’s shortsighted and greedy,” he said. "If stricter measures are not taken to protect our coastal homes, lives and property are put at unnecessary risk, and insurance companies

Monday, September 10, 2007.CNN: A HOUSE DIVIDED Part 1If this video link doesn't work for you, use the story posted earlier today to view the videos of Part 1 and 2 of this story about bad builders, sinking houses, in AZ.

Monday, September 10, 2007.Wall Street Journal: Congress and Recession(Whether interest rate reduction, if it comes, will be) response to general economic conditions, rather than to the pleading of Wall Street and homebuilders to rescue them from their bad lending decisions.

Monday, September 10, 2007.US; Inman blog, real estate news: Pressing the Red ButtonThe National Association of Home Builders trade group, in a statement released today, called for govt to put the housing market and economy back together again. (Wonder why they didn't want the govt around when consumer advocates predicted the current housing mess as a result of industry practices??? --Ed.)

Sunday, September 09, 2007.Nat'l interest: Straw Bale BuildingIdea far from new. Taos Pueblo in New Mexico, an adobe-constructed village built by Taos Indians nearly 1,000 years ago still being lived in today

Sunday, September 09, 2007.NJ: UPDATE: Kara Homes BankruptcyCreditors eye Kara makeover: proposed name change to "Maplewood Homebuilders." Some home buyers may only get back pennies on the dollar, of deposits.

Saturday, September 08, 2007.WA: Homeowners sue developerSuit against Premier Communities: [Article indicates arbitration clause in warranty allows them "other options" if not successful; we question that, since most such clauses are "binding." --HADD Ed.]

Saturday, September 08, 2007.Builder Online: Builders Meet With Fed to Discuss Mortgage CrisisSame builders (who) created excess inventory that helped push housing industry into downturn (met) behind closed doors with Federal Reserve chairman Ben Bernanke. ... Actual agenda of meeting not clear, as NAHB and spokespeople for several large builders declined to answer questions. Builder Online confirmed CEOs from KB Home, Pulte, Hovnanian are among builders at meeting. NAHB refused to provide full attendee list. [Builders' in house lenders also got in on risky loans. Don't be fooled by "bailout for homeowners" that will really bail out the industry. --HADD Ed.]

Saturday, September 08, 2007.MN: UPDATE: Government investigation of homes by Parish Marketing Closing agent pleads guilty in home fraud: $50 million in losses. Robbins, closing agent and licensed notary public, admitted he participated in scores of fraudulent real estate transactions on behalf of home builder described in court records only as "Company A."

Saturday, September 08, 2007.US: Big Houses Are Not GreenAmerica's McMansion Problem: Very few houses now being built are as energy-efficient as they could be...

Saturday, September 08, 2007.NV: Unnecessary home repairs for seniors?[Possible "inspection and repair" scam; homeowners should go to builder first, then the Nevada State Contractors Board for its free services instead, according to Las Vegas Lemonade http://lasvegaslemonade.org which supplied the link to this article. -ED.]

Saturday, September 08, 2007.US: Unsafe at Any RateIt is impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street–and the mortgage won’t even carry a disclosure of that fact to the homeowner.

Friday, September 07, 2007.US: Bush offers a way out of the foreclosure mess, for someRemedy would give the very lenders who have stuck borrowers with loans they couldn't afford a chance to profit again by refinancing those loans - this time underwritten by government insurance. Lenders who bear so much of the responsibility for creating the problem shouldn't benefit from the solution.

Friday, September 07, 2007.Realty Times: Mortgage Loans: Know What You are SigningThat same lender who wants you to take a payment option arm to cut your payments in half also runs another ad telling you what an idiot you are if you have an adjustable rate mortgage

Friday, September 07, 2007.US: UPDATE: Beazer's Default Dilemma3 possible outcomes: Beazer files 10-Q within 60 day period, U.S. District Court rules against Beazer saying default has occurred because earnings report wasn't filed, or court rules in Beazer's favor and Beazer has unlimited time to file 10-Q. "The last outcome would set an unfortunate precedent, and may have significant ramifications for all investors ... Investing without critical and promised material information is investing in the dark."

Friday, September 07, 2007.US: Beazer In Legal Showdown As Bondholders Allege DefaultBeazer's woes similar to BearingPoint (case) a management and technology consulting company that lost a legal spat with bondholders about whether it was in default after missing filings. New York State Supreme Court judge sided with bondholders, saying defendants were liable for breach of contract.

Friday, September 07, 2007.US: Investors seek scrutiny of builders' mortgage lendingCalling Beazer "the poster child of why their peer companies need to take steps," Michael Garland, CtW's director of value strategies, noted that other builders, including KB Home and Ryland, also have been hit with accusations of questionable lending practices.

Friday, September 07, 2007.CO; FL; MI: UPDATE on First Homes lawsuitsCredit unions face lawsuits by people who say they were defrauded by First Home, Hovnanian and a variety of lenders and real-estate agencies.

Friday, September 07, 2007.PA: Criminal charges against Karoly dismissedUPDATE: Slayton, a homebuilder charged with stealing $500,000 in customers deposits, remained fugitive for a month, with prosecutors alleging Karoly gave him money and aid before his capture.

Friday, September 07, 2007.MI: Court ruling may save Michiganders money on energyPublication of housing code was halted at eleventh hour when Michigan Association of Home Builders filed suit in 2005, despite extensive rulemaking process that took more than two years.

Friday, September 07, 2007.Real Estate Q & A column: Scroll down to: "RISKS OF HAVING A NEW HOME BUILT"QUESTION: What are the risks of buying a brand-new house or having one built by a builder who might be in financial trouble? What happens if the builder goes bankrupt...We are concerned because the builder has had some bad publicity with its mortgages and its stock price is way down. --- ANSWER: Home builders are notorious for filing bankruptcy and leaving their home buyers without any recourse...
A favorite trick...is to form a separate corporation for each new subdivision, and after the development is completed dissolve the corporation to avoid future liability.

Thursday, September 06, 2007.TN; Nat'l interest: Warranty Woes With American Home ShieldAlthough the company is a member of the BBB with a satisfactory record, it has racked up 2,268 complaints in the last three years.

Thursday, September 06, 2007.CA: 'Shelter In Place’Developers Boost Profits with Risky, Experimental Tactic of Building Homes in Remote, High Fire Severity Zones Without Being Required to Provide Roads for Evacuation

Thursday, September 06, 2007.MN: Feds: `Straw buyers' plan led to suburban home foreclosuresAlleged mortgage fraud conspiracy involving about 200 houses has led to estimated losses of more than $50 million, federal authorities revealed...foreclosures rooted in sale of homes by Eagan builder Parish Marketing and Development

Thursday, September 06, 2007.US: Government Sponsored Mortgage PlacebosWhy did stock market react positively to what is effectively an attempt to put out a forest fire with a shot glass? Isn’t that a clue the market is still out of touch with reality and/or is basically looking for anything that hints at return to “good times” of real estate boom, as opposed to attempting to build sustainable financial model for future?

Wednesday, September 05, 2007.US: Arbitration Fairness Act of 2007There is no bill pending in Congress that scares Corporate America more than this one. There is no bill pending in Congress that could more help the American people than this one.

Wednesday, September 05, 2007.CO: Test-Drive Your New HomeUPDATE: About 17% of new homes constructed last year had significant construction problems, up from 15% in 2003, according to Criterium Engineers

Wednesday, September 05, 2007.Builder Online: Builders Meet With Fed Some of the same builders whose companies created the excess inventory that helped push the housing industry into its current downturn are reportedly meeting today behind closed doors with Federal Reserve chairman Ben Bernanke...NAHB - which arranged meeting through its High-Production Homebuilders Council - and spokespeople for several large home builders declined to answer questions... (Is this is the part where the industry, which wanted the govt out of its business, is now asking the nanny govt to bail it out? Don't be fooled that this bailout is for anything BUT the industry. --Ed.)

Wednesday, September 05, 2007.NJ: UPDATE: Kara Homes bankruptcySome creditors likely to OK plan, others not so much: "it's very pathetic that a company can take a deposit, give you 9 cents on the dollar, and then go back into business like nothing happens." Kara may change name to Maplewood.

Wednesday, September 05, 2007.KS: UPDATE ON MILLER CASEA jury trial is set for Oct. 30 in the $25 million bank fraud and money-laundering case against Kansas City area home builder F. Jeffrey Miller and six co-defendants.

Wednesday, September 05, 2007.US: The Moral Argument Against All BailoutsWho else do you think will be left holding the bag when the government borrows money to bail out insolvent borrowers and lenders? Just to refresh our memory: we as a nation are $8 trillion in the hole. Any "bailout" will be borrowed from the Chinese and Saudis and added to our already unconscionably burdensome National Debt

Tuesday, September 04, 2007.PA: Binsack hearing heated UPDATE: Bank of America executive Michael McCarty testified that when he met Mr. Binsack in May, he thought the new banking client would be lucrative. (This is the builder whose criminal record was not reported by the builders association or BBB.)

Tuesday, September 04, 2007.US: Commentary: Subprime LoansSome homebuilders have gone into the mortgage business themselves, which could be considered a conflict of interest. There were those who, eager to collect the financing and get the dirt flying probably were tempted to misrepresent their customer's credit situation. The builders would be paid, whether the lenders were or not.

Monday, September 03, 2007.YOU TUBE VIDEO: KB Home's Bombs"Housing Developer Manipulates the System and builds on top of a bombing range."

Monday, September 03, 2007.MI: Nightmare at dream houseBuilder Christopher Sorenson, and Daniel Hogan, mechanical contractor: Basement wet, walls sagging, sinks don't drain, windows don't fit, heating and cooling system barely functions, floor needs to be replaced, and roof could collapse. Those are handful of home's 104 major building code violations state inspectors should have caught. State inspector admitted house was never inspected...relied on word of builder that work was properly done.

Monday, September 03, 2007.US: Backer of Swift Boat ads has tie to law firm pushing vote changeLawyers behind California ballot proposal that could benefit 2008 Republican presidential nominee have ties to Texas homebuilder (Bob Perry) who financed attacks on Democrat John Kerry's Vietnam War record in 2004 presidential campaign. (As well as other smear ads, etc...)

Monday, September 03, 2007.US: Data look fine, but Fed will probably cut anyway[M]eetings between Fed officials and groups such as bankers, home builders and manufacturers. Most of this information never published, but does go into decisions made in inner councils of Fed.

Monday, September 03, 2007.US: Home Solutions says short seller's charges aren't trueAccording to Mr. Left and his Web site, Home Solutions is a "house of cards" that will soon collapse, its revenues aren't to be trusted, and its executives issued false reports of new work to rally the stock price so they could sell millions of their own shares.

Monday, September 03, 2007.MO; Nat'l interest: Attack on judiciary is power grabHow judges are appointed or elected; comments include notes about homebuilder Bob Perry's influence.

Sunday, September 02, 2007.FL; Nat'l interest: Those cashing in on growth must pay for itHome builders are, indeed, hurting, along with tradespeople who earn modest salaries. It's because their greedy bosses overbuilt the market and now illogically demand relief. (Article allows commentary at end.)

Sunday, September 02, 2007.US: Can the Mortgage Crisis Swallow a Town? TAMMI and Charles Eggleston never took out a risky mortgage, never borrowed more than they could afford and never missed a monthly payment on their neat, three-bedroom colonial in the Cleveland suburbs. But that hasn’t prevented them from getting caught in the undertow of the subprime mortgage mess...

Sunday, September 02, 2007.US: Subprime TimeThe absence of scrutiny on Wall Street had a profound effect on mortgage origination. As mortgage bankers discovered that investors would buy virtually any loan whatsoever, they naturally lowered their standards. What difference whether a loan was sound if you could flip it in 48 hours?

Saturday, September 01, 2007.US: The New Money PitIt started with subprime mortgages. Now owners of McMansions are defaulting

Friday, August 31, 2007.TX: Lamar Homes v. Mid-Continent Casualty Certified Questions from the United States Court of Appeals for the Fifth Circuit re: when a builder's insurance carrier must pay claim.

Friday, August 31, 2007.US: Putting Lipstick On Pigs Large builders established mortgage-writing subsidiaries, built more houses than market could absorb...subsidiaries exaggerated incomes and qualifications of buyers on loan applications, exaggerated appraisals of properties. Operated on lines of credit and resold the loans to investment banks, which bundled them into bonds. Both builders and investment bankers had incentive to put lipstick on pigs.

Thursday, August 30, 2007.CO; FL; MI: Developer linked to Norlarco dropped insurance"H. Kovnanian" (Could the reporter have actually meant K. Hovnanian?) Incident another in string of dealings between Norlarco and Florida homebuilders that led federal regulators to take over credit union.

Thursday, August 30, 2007.US: No Tax Relief for Housing WoesBusinesses, like builders, can write off loss on their taxes, but homeowners may have to pay tax on portion of unpaid loan in foreclosure.

Thursday, August 30, 2007.US: Bernanke Is Under Pressure To Signal Rate CutFed watchers say Bernanke is leery of rushing down the path of his predecessor, Alan Greenspan, who has been criticized for running to Wall Street's aid with interest-rate cuts.

Thursday, August 30, 2007.US: Contact the Federal Reserve Board about the Mortgage MessDo you feel builders, lenders, and investors deserve to have the government bail them out at taxpayer expense? Online submission form, or send letter by snail mail to: Federal Reserve Board, 20th Street and Constitution Avenue, NW, Washington, DC 20551

Thursday, August 30, 2007.International: Mold and MoodsA new study out this week in the American Journal of Public Health suggests that damp, moldy homes are associated with an increased incidence of depression. Why? “Some molds are toxins, and exposure to these toxins may hypoactivate parts of the brain that deal with emotions,”

Thursday, August 30, 2007.US: Home builder sounds recession alarm, calls for rate cut Hovnanian said that a group of home-builder CEOs were scheduled to meet with Federal Reserve Chairman Ben Bernanke next week. (As predicted, builders call for Nanny Govt to come bail them out, packaged as being good for the economy, after years of wanting "goverment out of our business." --Ed.)

Wednesday, August 29, 2007.US: Lawyers Learn From HomeBanc's DemiseIn addition to the large number of loans it sold, HomeBanc had other ways of leveraging its influence. HomeBanc had one of the most extensive networks of marketing agreements, also known as affiliated business arrangements, or AfBAs, with builders or real estate agents

Wednesday, August 29, 2007.CA; Nat'l interest: Title firm settles over kickbacksIllegal rebate schemes damage trust of consumers and drive up cost of purchasing home...Stewart Title accused of making illicit payments to Lennar.

Wednesday, August 29, 2007.CityBeat.com, OH; Nat'l interest: Aggressive business reporter gets cannedExcellent reporter Jim McNair fired from the Cincinnati Enquirer after poking his investigative nose into industries like banking and homebuilding. HADD has posted or saved many of Mr. McNair's articles over the years.

Tuesday, August 28, 2007.Nat'l interest: Arbitration has no jury and no appealOveruse (of arbitration clauses) in consumer and employment matters has quietly eroded the rights of the American people, according to U.S. District Judge William G. Young of Massachusetts, who spoke at The Florida Bar's Annual Convention in June. (Most new home purchses and warranty policies have arbitration clauses.)

Tuesday, August 28, 2007.Nat'l interest: Bill of RightBill is a bad home inspector—one of those incorrigible uppity ones who won’t soften up his reports to help the builders and real estate agents move their deals along. (by Walter Jowers, one of our favorite home-inspector-authors.)

Tuesday, August 28, 2007.FL; CO; Nat'l interest: Florida buyers' ties to Norlarco unclearFirst Home Builders, now called K. Hovnanian First Homes: Documents show Norlarco and First Home Builders provided financing for dozens, if not hundreds, of homes...now delinquent

Tuesday, August 28, 2007.Barry Stone column: Newly built home riddled with problems"I've notified the builder of these problems, but he shows no interest or concern...by the way, the builder is also carrying the note on the property."

Tuesday, August 28, 2007.Business Week: Builders' Role In The Housing CrisisReaders' letters in response to early Aug. series "Bonfire of the Builders" and related stories, incl. from president of the Nat'l Assoc. of Home Builders, as well as consumers and HADD.

Tuesday, August 28, 2007.CT: Collins HellPictures and other documentation of 40+ building code violations in house built by David Fugge of Modern Restoration, LLC

Monday, August 27, 2007.US: Inside the Countrywide Lending Spree Former employees: borrowers often led to high-cost, unfavorable loans that resulted in richer commissions for Countrywide’s smooth-talking sales force, outsize fees to company affiliates providing services on the loans, and roaring stock price that made Countrywide executives among highest paid in America.

Monday, August 27, 2007.US: The Fed’s Subprime SolutionCapitalism without financial failure is not capitalism at all, but a kind of socialism for the rich. (p.2)

Monday, August 27, 2007.US: BEWARE BAILOUTSThere is something unseemly about watching avatars of free-market capitalism rely on government to pay for their bad bets. And there is something scary about contemplating even bigger bets they’ll make in future if they know the Fed is there to bail them out.

Monday, August 27, 2007.Nat'l interest: Builder falls behind on military housing projectsAmerican Eagle Communities, LLC failed to pay some Little Rock-area contractors and suppliers, fell far behind schedule for construction and refurbishing of 1,200 base homes and work stopped May 7, leaving the Air Force scrambling for answers and solutions.

Monday, August 27, 2007.US: How homeowners can escape a mortgage messTroubled home­owners may want to run and hide, and lenders may seem unresponsive, but "the longer you wait, the fewer options you have for a workout," (pg. 2)

Monday, August 27, 2007.International interest: Why is Greece on fire?Many of the fires, government and forestry experts say, have been set by arsonists, hoping to clear land for development.

Sunday, August 26, 2007.FL: WHO CHECKS TO SEE IF HOMES ARE FLAWED?A 2002 law lets the builder decide, and the builder doesn't have to inform the potential buyer. (Fox Guarding the Henhouse...it's not working. --Ed.)

Sunday, August 26, 2007.NJ: When failure is an option Loopholes in law allow builders, insurance companies, to escape paying for unfinished, shoddy work that new law was supposed to hold them accountable for.

Saturday, August 25, 2007.TX: Consumer Group calls changes to Texas Residential Construction Commission "worthless"The enforcement powers, provided to the Commission, has a very high threshold, one that will continue to hinder the Commission from taking action against a builder. And the $7.5 million additional funds will also do little for the consumer. “The additional funds anoints the TRCC as the most expensive worthless Commission in Texas”

Friday, August 24, 2007.Washington Post: Why We Need a Housing RescueWilliam H. Gross wants a bailout; (is this the industry bailout-disguised-as-consumer-protection we figured was coming? Comments at end of article suggest we're not alone in that thought. --Ed.

Friday, August 24, 2007.TX: Tremont Homes and Jordan FogalAs someone who at first was very skeptical of mold contamination stories, I toured her home for about 15 minutes before having to leave. Her house was beautiful, but whatever was in the air bothered the hell out of me. It made me short of breath. My chest heart. And I felt sick. Now I know how the Governor, the Attorney General, and State Representative Joe Nixon felt when they had their homes/offices remediated for mold.

Thursday, August 23, 2007.US: Blowing the Whistle on SarboxIn Collins v. Beazer Homes USA, federal district court judge found complaints about violations of internal accounting controls were protected under Sarbannes Oxley--the whistleblower law, because they stated violation of securities laws which require companies "devise and maintain system of internal accounting controls."

Thursday, August 23, 2007.US: Beazer seeks to avoid default Company sued U.S. Bank National Association in bid to stop bank from putting Beazer into default on $1.4 billion in loans...delayed filing third-quarter 10-Q with SEC as it continues internal investigation into accounting issues

Thursday, August 23, 2007.OK: When contractors file frivolous lawsuitsContractor (Garage Storage Cabinets LLC) filed suit on competitor-contractor just to put them out of business; Court ruled it frivolous and in bad faith.

Thursday, August 23, 2007.TX: Arbitration bites Trendmaker HomeownersThis is clearly an abuse not only by Trendmaker Homes, but by the American Arbi-traitors Association. If the AAA had any decency or common sense, they would not enforce this arbitration clause. But this won't happen. This arbitration would be a money making case for the AAA and their arbitrators. The arbitration would require at least 3 arbitrators, each being paid $1000 a day and the filing fee would be in the tens of thousands of dollars. It is truly a money making scam.

Wednesday, August 22, 2007.OH; US: Foreclosure rate soars in Ohio and nationwideRising interest rates on adjustable mortgages and homebuilders' promotional loan rates that "bought down" the interest rate for the first year or two contributed to the increase

Wednesday, August 22, 2007.Consumer Law Blog: Lose Your Home and Pay More TaxesPeople who lose their home to foreclosure or short sales may get big tax bills from IRS.

Wednesday, August 22, 2007.Business Week: Subprime Profiteers Go Belly UpNearly overnight, mortgage company execs saw their personal wealth evaporate. Some will find it hard to adapt to a less lavish lifestyle

Wednesday, August 22, 2007.US: San Francisco Cronicle writer Jon CarrollWhat's safer than real estate?" they would say. "They're not making any more land." It's a seductive line, but it's just another line, much like "I'll call you in the morning."

Tuesday, August 21, 2007.US: Beazer Homes asks court to rule it not in defaultBeazer Homes USA Inc said on Tuesday it sued U.S. Bank National Association in federal court in Atlanta, asking the court to rule that a delay in filing its quarterly report did not constitute a default on $1.3 billion of its outstanding notes.

Tuesday, August 21, 2007.TIME Magazine: Ground Zero of the Real Estate BustLending arms of builders come with conflicts of interest, pressure from shareholders to get people into houses and book profits.

Tuesday, August 21, 2007.MS: Contractor complaints to be heardThe Mississippi State Board of Contractors will hold a "special call" public hearing in Gulfport today beginning at 9 a.m. and continuing through midafternoon. Details: 896-7646.

Tuesday, August 21, 2007.US: Jordan Fogal Responds To Your CommentsRe: two articles posted earlier today (Aug. 21) about Jordan's uninhabitable defective house that went into foreclosure for lack of any better option for her. Jordan's case was also severely hampered by an arbitration clause.

Tuesday, August 21, 2007.FL; US, from Counter Punch: Sand Houses and Missing BeachesHousing boom, now in cinders, was not built on your desire for a new home, a bigger home, or any kind of home. It was manufactured by builders and developers and Wall Street.

Tuesday, August 21, 2007.Forbes: Burnt Fingers, Red Faces And BernankeHome builders did it to themselves. Many bought back stock in the good times. You don't do this in a capital-intensive business. They abetted starter home buyers to find no-money-down mortgages too. Why shouldn't they be punished?

Tuesday, August 21, 2007.Business Week: Foreclosure's Building ProblemShe wasn't an investor. She didn't have a subprime mortgage. But when Jordan Fogal's house became uninhabitable, the 62-year-old grandmother says foreclosure became her best alternative.

Tuesday, August 21, 2007.Ca: 9th Circuit Court: Arbitration Ruled UnconscionableAT&T's response is comical, much like the American Arb-traitors Associations response to the Arbitration Fairness Act of 2007, and Comcast's comments: "This opinion is based on our old arbitration clause. We have significantly improved that clause to make it even more consumer friendly. We believe arbitration is the best course of resolution for our customers,” said AT&T in a statement.

Monday, August 20, 2007.US: After the Pain of Foreclosure, a Big Tax BillHomeowner received bill from Internal Revenue Service for $34,603 in back taxes. Letter explained that debt canceled by lender upon foreclosure was subject to income taxes, as well as penalties and late fees.

Monday, August 20, 2007.NJ: Marlboro developer fights penalties in courtDeveloper Edward Kay ordered to pay penalties for two homes in Rosemont Estates age-restricted development. ... The 12-count indictment accused Kay and the Meitermans of scheming with former WMUA executive director, Frank G. Abate, to defraud the WMUA, and of committing mail fraud. It also accuses the Meiterman brothers of obstructing a grand jury investigation...

Monday, August 20, 2007.NY: BLAZE-SITE DEVELOPER UNSCARRED BY PENALTIES"If someone doesn't pay tickets for running red lights... they lose their driving rights, so why is he being allowed to build when he owes so much in fines and has a long history of cutting corners and endangering lives with shoddy workmanship?" Thies said.

Monday, August 20, 2007.US: Fasten your financial seat beltThe problem, in case you’ve been in a cave or deep in denial lately, is fallout from America’s bursting real estate bubble (about which Examiner readers were warned a year ago...

Sunday, August 19, 2007.NJ: Commerce Bancorp has too much powerDespite the serious construction problems that are noted in their files of Cherry Hill building inspector Anthony Saccamano, Philip Norcross intervened on behalf of D.R. Horton to get Saccamano to pull his stop construction order.

Sunday, August 19, 2007.PA: Legislation would regulate home builders Expert estimated estimated it would cost the Hoopers nearly $30,500 to fix all the problems (in house built by Michael Manning and Associates).

Sunday, August 19, 2007.US: Panic on Wall StreetWall Street rigged the system so (housing market crash/subprime meltdown) was inevitable. same games that Wall Street played with subprime are likely being played in every sector of the economy. Subprime ripped a window open into the way business as usual is being conducted.

Saturday, August 18, 2007.NY: UPDATE: Problem house certified Prior owner has doubts home is capable of meeting code. "We were told the foundation was all wrong...Who knows what else got swept under the rug." (Builder is Dave Roberts.)

Saturday, August 18, 2007.TX: The TRCC. The most expensive worthless Commission in Texas.The TRCC was created in 2003 and after 4 years of absolute failure, the original authors, State Representative Ritter (see A Jackass of a Democrat) and Senator Fraser (see Homebuilder bills gets a free ride by Senator Fraser), modified the law with HB1038 in 2007. One of the major changes to the Commission was the addition of $7.9 million to their budget to hire more lawyers and administrators. Now the TRCC is the most expensive worthless Commission in Texas.

Friday, August 17, 2007.Nat'l interest: UPDATE: Is this dream deal for real?Fredericksburg Dream Homes, Metropolitan Grapevine, POS Dream Homes... "There is great risk of the loss of investors' money where there is no demonstrated source of income except other investors," Maryland Attorney General Douglas F. Gansler said... (i.e., a Ponzi Scheme. --Ed.)

Friday, August 17, 2007.FL: Friends call jailed contractor 'good guy' Seventy-five percent of Bleyl's customers are facing foreclosure on the properties, and many have no homes on them, even though they gave Bleyl deposits of up to $100,000

Friday, August 17, 2007.National: The American Arbi-traitors Association deceives again.This sounds familiar. In March of 2003 (or 2002) when arbitration was under fire by the Texas House and Senate, the AAA announced revised rules for construction defects. Imagine that. The rules "allowed" the use of small claims court, a revised pricing schedule, and more. And much like the 2007 press release the AAA refused to address the fact that they continue to use, and abuse mandatory binding clauses.

Friday, August 17, 2007.US: Contract "Loopholes": Mortgage ApprovalProblems using the builder's lender. We would disagree with the author's remark that he thought the home buyer used as an example was an "isolated incident," but otherwise the article serves as a good explanation and warning.

Thursday, August 16, 2007.TIME Magazine: Real Estate's Fault Line[Brokers] make more money with higher-rate loans, even if buyers qualify for better deal. And that doesn't even touch the lending arms of home builders, which come with their own special conflicts of interest once you consider pressure from shareholders to get people into houses and book profits.

Thursday, August 16, 2007.US: Mortgage crisis stoked by ‘incredible greed’As a cascade of mortgage companies go under, “the upside,” he said, is “the destruction of an industry that never should have happened in the first place.” The house of cards...

Thursday, August 16, 2007.US: Who's Watching the Store?Whistleblower reports mortgage fraud to lender. Incredibly, lender has no interest or mechanism to deal with it and says "call the Better Business Bureau." (This editor laughed heartily at that proposed solution.)

Thursday, August 16, 2007.KY: Builder is again indicted Brian Hockensmith, Hockensmith Custom Homes, accused in May of ripping off a person for whom he was building a house has been indicted again on a similar charge. Home buyer will probably be sued by the bank for the mortgage, says the article's author.

Wednesday, August 15, 2007.Wall Street Journal: Fannie, Freddie, & the Housing BustBorrowers who were unwitting and took on too much debt must learn that there are consequences for their actions. Homebuilders that built too many homes or overpaid for land need to face the consequences. Wall Street firms that provided credit to all of these activities with too much laxity must also pay a price. This is all part of a healthy correction.

Wednesday, August 15, 2007.National interest: Green Building ResourcesLots of links for people planning to build "green."

Wednesday, August 15, 2007.CO: HOA suing homeowners for living in RV in drivewayUninhabitable moldy home built by Ryland; family's doctor told them not to live in the house. Family has been unable to live in the home for years, finally resorted the the RV after many motels and living with relatives.

Wednesday, August 15, 2007.The Pitch--Kansas City: Now Not HiringCity Hall hands out tax breaks to developers who promise lots of good jobs. But the payrolls are looking mighty slim.

Wednesday, August 15, 2007.GA; National Interest: Arbitration and Sue Campbell Properties ComplaintHomeowner's horror story of arbitrator who ignored evidence and ruled in favor of builder. Other homeowners privately confided in homeowner that they, too, had had problems but were afraid to speak up. Anyone buying a house or signing a contract should read this story of what arbitration can do to consumers. --HADD Editor

Wednesday, August 15, 2007.US: Government Shouldn't Bail Out Failing HomeownersMost people with even a cursory knowledge of free market economics understand that governmental interference doesn't alleviate problems; it simply makes them more severe and longer lasting.

Tuesday, August 14, 2007.National: Mandatory Binding Arbitration. A scam.Homebuilders and other industries have long defended the used of mandatory arbitration clauses, claiming arbitration is good for the consumer, but the evidence proves otherwise. The abuse of arbitration will stop only when it is truly an option, not a mandate, to our current court system. Until then consumers should carefully read their contracts and rethink their purchases if there is a mandatory, binding arbitration clause.

Tuesday, August 14, 2007.US: Tax breaks go toward inland luxury condosWith large swaths of Gulf Coast still in ruins from Katrina, rich federal tax breaks designed to spur rebuilding are flowing hundreds of miles inland to investors buying up luxury condos

Monday, August 13, 2007.US: Too big for feds to fixWall Street is hoping for a bailout of the reckless mortgage sector that violates the whole concept of capitalism. It won't work, because there's too much mess to clean up.

Monday, August 13, 2007.TX: The American Arbi-traitors AssociationThe abuse of mandatory binding arbitration has continued to be exposed in articles throughout the United States. One in particular caught my attention. Richard Naimark, Senior Vice President of the American Arbitration Association was quoted in the Charlotte Observer:

Richard Naimark, a senior vice president of the American Arbitration Association, said his forum has safeguards to keep the arbitration process fair. "In our process, we require really stringent disclosure from arbitrators," he said.

Sunday, August 12, 2007.US: Arbitration clauses under microscopeGet a credit card, buy a car, (or a house) or sign up for a cell phone plan, and chances are, if you're unhappy with your transaction, you won't be telling your story to a judge.

Sunday, August 12, 2007.US: Foreclosure's Toll Still RisingLoose lending by builders, lenders, and depreciation in house values has caused many owners to have to rent out their expesive houses. Some owners, behind on hefty mortgage payments for houses worth $500,000 and up, seeking Section 8 status to get govt to pay portion of tenant's rent.

Friday, August 10, 2007.GA: Georgia Duo guilty of fraudHaskell used their Heritage Lending Group mortgage company and Superior Home Builders Inc. to play a shell game with the banks. (This article is older but a newer update to it was not free online. Watch for updates. --Ed.)

Friday, August 10, 2007.US: Attorney groups keeping tabs on ethics in mandatory arbitrationTestifying before a congressional committee considering the Arbitration Fairness Act of 2007, Paul Bland spoke for many attorneys when he explained the problems created by mandatory arbitration clauses that seemingly come with everything from phone service to a new car. (And a new house! --Ed.)

Thursday, August 09, 2007.National: Defects dull dream home's lusterNot the best written article. Lots of inaccuracies and over simplification such as: " In Texas, the state's Residential Construction Commission launched the Star Builder Program, which is designed to recognize the state's best builders." In reality, out of over 24,000 builders in Texas, only 18 applied for this program. 18.

Thursday, August 09, 2007.US: Justice not always about right and wrongJury could not find scammer to be technically guilty of fraud under the law but found defendant's (Loren Williams) business practices to be "deplorable, unethical and unscrupulous."

Thursday, August 09, 2007.TX: Fugitive Found In KuwaitKuwaiti officials alerted to construction contractor Richard Gene Guy who was wanted in TX; was allegedly trying to take money from people working as low-profile contractor in Kuwait.

Thursday, August 09, 2007.US: Praying for a Rate Cut and Missing the PointLowering interest rates (created) bubble in the first place. Lowering them again (will) only make things worse and lead us towards even greater calamity.

Thursday, August 09, 2007.US: Still more housing bullSmoke and mirrors from the Nat'l Association of Realtors needs to be exposed

Wednesday, August 08, 2007.Warranty Week: New Home WarrantiesWhile sales are declining, warranty accruals are declining even faster. Is it because of warranty cost cutting? Could it be better quality construction? Or are they simply putting less aside and hoping that nobody notices?

Wednesday, August 08, 2007.FL: Housing officials are oustedMelted fixtures and outlets, red hot electric boxes and apartments where switching on the stove also turned on the lights.

Wednesday, August 08, 2007.FL; Nat'l interest: Zero energy home debutsAccording to Schroeders, the technology has been around since the 1970s and has just recently become cost-effective.

Wednesday, August 08, 2007.FL: Broward Sheriff Jenne aided builderPhilip Procacci, prominent South Florida developer who poured nearly $1 million into a failed business venture received nearly all his money back with help of Broward Sheriff Ken Jenne, according to witness who testified before federal grand jury.

Wednesday, August 08, 2007.CA; Nat'l interest: Defects dull dream home's lusterLack of public records makes it tough to determine a builder's track record of quality, customer service...Arbitration clauses in many housing contracts prevent unhappy home buyers from suing in open court, further shielding builders from public scrutiny.

Wednesday, August 08, 2007.AR: Base Builder BankruptEagle Communities’ stalled $127-million contract to provide housing...subcontractors, suppliers left holding the bag for hundreds of thousands of dollars of work and materials and still the failed developer collects about $9 million a year in rents from LRAFB airmen in privatized base housing.

Wednesday, August 08, 2007.US: Attack Ads You'll Be SeeingA "new low" in dishonest political attack ads. Kind of reminds us of the dishonest tactics of a certain builders' lobbyist in CO earlier this year, see CO HOME Alliance, wwww.cohomealliance.org for details on that one.

Wednesday, August 08, 2007.US: Hiding the sales priceNAR, others, approve paying a fee to keep sales prices of properties out of the MLS

Wednesday, August 08, 2007.US: Arbitration First-HandArticle is about credit card company arbitration but is relevant to all consumer arbitration, incl. that in home builder and warranty contracts. Feature to leave comments at bottom.

Tuesday, August 07, 2007.US: Survey Shows Americans Against Subprime Bail OutU.S. tax payers paid billions of dollars to bail out savings and loans in the 1990’s, largest white collar scandal in nation’s history. It cost every man, woman and child an estimated $10,000 at the time.

Tuesday, August 07, 2007.US: Homebuilders: Hell Fights BackBuilders build until they go bust. It's the same every cycle. They keep plowing all earnings into more and more land at artificially inflated prices until the Ponzi scheme finally blows up.

Tuesday, August 07, 2007.US: Bad Call From a Wall Street King "Investors in the sub-prime market, to be perfectly honest, deserve everything they get," he says. "If they couldn't see that these loans were abusive, that the risk cover was pathetic, then they deserve to take a bath."

Tuesday, August 07, 2007.IL: Foreclosure shakeoutReal-estate agent performed market analysis on property for local bank, and every comparable home he turned up was foreclosure property....part of nationwide trend.

Tuesday, August 07, 2007.US: Housing scene in turmoilHUD needs to (close) down one-stop-shop entities known as Affiliated Business Arrangements. These entities between builders, title companies, Realtors and mortgage giants tend to mislead borrowers who end up paying in the end.

Tuesday, August 07, 2007.US: Zero Down: The Loan Comes DueGerman bank had to be rescued by other banks because it speculated in securities backed by American mortgages. (Article contains links to more of the report.)

Tuesday, August 07, 2007.US: Arbitration clauses"We have allowed corporations to decide what part of the constitution we have access to." (Home purchase contracts have these clauses in most instances. --Ed.)

Tuesday, August 07, 2007.FL: Major Flaws Found in Home Now Part of State InvestigationUPDATE: Drees Homes complaints, concrete foundation doesn't meed code: State law changed four years ago allowing builders to hire private inspectors rather than city inspectors. Norman believes law change played role in problem.

Tuesday, August 07, 2007.Business Week: Angry Homeowners Vent OnlinePart of the "Bonfire of the Builders" series posted last week, links to more are at right side of article.

Saturday, August 04, 2007.TX: Comcast arbitration and the Arbitration Fairness Act 2007Consumer activist John Cobarruvias is not even a Comcast cable customer but he's hopping mad about the arbitration notice. "It's amazing. We have allowed corporations to decide what part of the constitution we have access to," Cobarruvias told FOX 26 News.

Saturday, August 04, 2007.US: Home Myths Meet RealityConcern mounting about balance sheets of growing number of (home building) companies.

Saturday, August 04, 2007.PA: New Charges Against Home BuilderUPDATE: Scott Binsack case. Binsack wrote $10,000 check to American Cancer Society in fund raiser; it bounced. Already in jail for failing to build homes he took money for, etc.

Friday, August 03, 2007.US: Make a Bad Mortgage: Take the HitIn effect, taxpayers, including many of modest incomes who chose to live within their means and rent, would be subsidizing their more profligate compatriots and some of the nation's wealthiest financiers.

Friday, August 03, 2007.US: Crap Constructioncrapconstruction.com is a site shown along with HADD and others in one of the BUSINESS WEEK special report slide shows titled "Online Extra: Slide Show: Angriest Real Estate Gripe Sites"

Friday, August 03, 2007.BUSINESS WEEK: You Call This A Home? (Part of SPECIAL REPORT)"The next boom for builders may be complaints from angry homeowners." See links at right side of stories from Business Week report for much more.

Friday, August 03, 2007.BUSINESS WEEK REPORT: Bonfire Of The Builders "By rushing into the mortgage business big-time, homebuilders helped fuel the housing crisis." Article says as much as 90% of big builder's sales are also financed by builder's in-house lenders. Pulte, KB Home, Beazer, Lennar, Centex, Dominion, others... the loans are sold. Now, numerous homes in foreclosure. There is a feature to leave comments at end of article.

Friday, August 03, 2007.US: Housing Is Among `Biggest Bubbles,' "This is only time in world history when people were able to buy houses with no money down and in fact, in some cases, builders gave them money for down payment,'' Rogers said. ``So this bubble is the worst we've had in housing..."

Friday, August 03, 2007.MO: Illegal workers reported at O'Fallon, Mo., siteCity Administrator Robert Lowery Jr. is pressing the state and the St. Charles County prosecutor to bring charges against Hennessey Development Inc. of Clayton, the lead contractor on the Southernside apartment complex. The project, aimed at providing affordable housing, is supported by millions in tax credits and tax-exempt bonds. (Article goes on to say the illegal workers used stolen identities, and that this is common.)

Thursday, August 02, 2007.Nat'l: Network EarthArticles about green type building

Thursday, August 02, 2007.NY: A draining experienceRacketeering (RICO)lawsuit alleges Hempstead building inspectors ignored repeated requests to examine shoddy plumbing...advised her to bring complaint to town examination board, member of which owns company that held plumbing permit for the renovations.

Wednesday, August 01, 2007.Charlotte Observer: Matthews mortgage broker loses licenseThree Charlotte-area builders who held the second mortgages arranged by Hall agreed to forgive nearly $2 million in loans to settle allegations they violated state mortgage laws.

Wednesday, August 01, 2007.US; "Motley Fool" investing site: More Housing BullI'm surprised that the National Association of Realtors (NAR) can get away with keeping that dot-org Web address, since every bit of information it puts out is aimed at funneling money into the pockets of America's struggling real estate clerks....Meanwhile, homebuilders like Pulte Homes (NYSE: PHM), Beazer Homes (NYSE: BZH), and Lennar (NYSE: LEN) continue to pour more inventory onto an already slacking market.

Tuesday, July 31, 2007.US: American Home Can't Fund MortgagesShares plunged 90 percent; lender doesn't have cash to fund new loans, stranding thousands of home buyers, putting company on brink of failure.

Tuesday, July 31, 2007.US: Feingold defends consumer rightsAmericans are under constant assault by corporations that seek to get consumers to sign away their rights. The worst abuse involves mandatory arbitration agreements (common in home purchase and warranty contracts)...

Tuesday, July 31, 2007.US: Taxpayers and the Mortgage MeltdownBailing out homeowners facing foreclosure as result of mortgage mess, "a bighearted response but not a good idea. ...simply adds taxpayers to sucker list and bails out lenders who should be left to fry."

Tuesday, July 31, 2007.FL: UPDATE on Great Bay Homes caseHomeowners can't collect judgments won against builder; want state to pay from construction recovery fund.

Monday, July 30, 2007.FL: Left in the LurchFlorida has one of the highest foreclosure rates in the nation. But the downturn in the residential housing market has left plenty of other problems in its wake, including increasing numbers of construction defects.

Monday, July 30, 2007.US: Losing Your HomeUltimately, those who make foolish decisions have to live with them. But I'm disgusted that, at a time when families face being put out on the street, the men and women who pushed those nutty loans face no penalties at all.

Monday, July 30, 2007.FL: Banks latest to feel housing market's malaiseUPDATE: Nearly 20 percent of (problems loans in area) because of one bank, Coast Financial. Most of hit at Coast came from Construction Compliance, a builder now bankrupt.

Monday, July 30, 2007.FL; Nat'l interest: Is the Bank at Fault?Some banks release borrowers' money to contractors with little proof that the home under mortgage is actually being built. (UPDATE on the Coast Bank-Construction Compliance Inc debacle.)

Monday, July 30, 2007.Fungal disease sitePotentially useful info for those who have, or wish to avoid, mold.

Saturday, July 28, 2007.FL: UPDATE on CCI caseBank offers to buy out builder's ripped off customers but there's a catch--the buyers will have to pay income tax on waived portion of debt. Lawyer for the 140 or so homeowners says loans are fraudulent.

Saturday, July 28, 2007.PA: Jailed builder Scott Binsack hired former state Attorney General Ernest Preate to defend himAs attorney general, his office prosecuted several builders for fraud and shoddy work. Now as a private defense attorney, he defends homebuilders, in some cases the same builders his office prosecuted. (Ongoing series--HADD started posting news about Binsack problems at least as long ago as Dec. 05. Meanwhile BBB and HBA assured consumers he was reliable.)

Friday, July 27, 2007.Realty Times Q & A: Construction Defects leading to loss of value, foreclosuresQuestion: We are in a home with a construction defect and a poorly-managed homeowners association to boot. At any rate, the value of our home has dropped over $100,000. A handful of homeowner's have been short selling or foreclosing... (Not much of an answer given, but Question is indication of growing problem. --Ed.)

Friday, July 27, 2007.FL: Experts at the attackUPDATE on news posted last year re: Builders group behind untrue smear ads.

Friday, July 27, 2007.FL: Who will buy the empty homes?Glut of new but vacant homes, "for rent" signs; "Some of the homes are sitting out there with weeds, without air-conditioning, maybe even growing some mold," McCabe said.

Friday, July 27, 2007.CA; US: California's Real-Estate TailspinBuyers with good credit also affected; not limited to subprime; Exotic loans; Foreclosures up over 700% to 900% in some areas; Property experts still trying to put a positive spin to it.

Friday, July 27, 2007.US: Who's really surprised the housing market collapsed?Buyers repeatedly told home values were headed up so if they didn't buy, they risked being priced out forever...harder to show pity for those in the industry who seem shocked by what's going on.

Thursday, July 26, 2007.US: REMINDERArbitration Fairness Act of 2007: petition to support legislation that would make mandatory binding arbitration clauses in consumer contracts unenforceable. Let arbitration be a choice, after disputes arise, if parties agree; not a violation of our 7th Amendment rights.

Thursday, July 26, 2007.NY: Borough builders face fraud charges Five men, including engineers, contractors, arrested for filing hundreds of fraudulent documents that could have led to structures' collapse.

Thursday, July 26, 2007.PA: BACKGROUND: 2005 article on BinsackScott Binsack, criminal record: BBB and home builders association claimed they could not find out about it or could not report it. And yet, consumers are expected to rely on these sources to "do their homework." Relevant to articles posted yesterday and earlier in the week on Binsack arrest, and BBB and builders association sheilding him for years.

Wednesday, July 25, 2007.PA: Castle fades into fairy taleScott Binsack, of Mansions & Estates International LLC, told the widowed mother on his live radio program that he was going to build a house for her and her infant daughter, Gianna.

But the “Keys to Your Castle” contest, she said, turned out to be another false promise from the controversial homebuilder. The Internet message boards were just full of jealous contractors and unreasonable customers, (Binsack) said. (Article directly below is also on Binsack)

Wednesday, July 25, 2007.PA: Advertorials boosted Binsack’s image More on builder Scott Binsack's arrest: Binsack had a weekend radio show on WILK, “Building and Remodeling in the Millennium....Printed articles were mostly “advertorials” — paid, written advertisements designed to look like legitimate independent news stories.

Wednesday, July 25, 2007.TX: Dream home becomes legal nightmareBob and Jane Cull of Mansfield have been battling Perry Homes for 10 years, claiming their Perry-built house has fundamental flaws. (Relevant to newer article below)

Wednesday, July 25, 2007.TX: Complaint filed against state court justiceQuestions about impartiality of TX Supreme Court and their ability to rule in a fair and unbiased way. (Article related to the Cull case where Perry Homes lost in arbitration and court and was forcing the case to go to the TX Supreme Court after donating money to one of the judges.)

Wednesday, July 25, 2007.PA: UPDATE on arrest of contractor Scott BinsackAs he tried to deflect attention from his criminal history and rumblings about his business practices, homebuilder Scott Binsack used two powerful shields: the Lackawanna Home Builders Association and the Better Business Bureau. (HOW MANY TIMES HADD HAS HEARD THIS SAME PROBLEM FROM EVERY STATE! --Ed.)

Wednesday, July 25, 2007.US: Are arbitrators biased?According to study by Christian Science Monitor, top 10 most used arbitrators ruled for consumers only 1.6% of the time, as opposed to 38% for those not dependent on arbitration fees. (HADD opposes arbitration clauses which are common in builder and warranty contracts as well. --Ed.)

Wednesday, July 25, 2007.NC; Nat'l interest: Home inspector aggressively markets serviceReal estate agents who don't like inspectors to kill a deal call him the Home Inspector from Hell: “I don’t care if you buy the house or not. I don’t sell houses, I inspect them.” (This is the kind of inspector home buyers should hire, including on NEW homes; one who's a deal-killer. Do not hire an inspector based on the recommendation of someone who's got a vested interest in making sure the sale closes. --Ed.)

Tuesday, July 24, 2007.US: Charlotte Observer series on Beazer Homes investigationsPart of "Sold a Nightmare" series; SEC now formally investigating Beazer, on top of other federal investigations.

Monday, July 23, 2007.MD: Flush and forget? That's not an optionSeptic system not working; has never met Maryland Department of the Environment standards: NVR, Villas at Cattail Creek, (aka BRS Developers)

Monday, July 23, 2007.TN; MS; LA: Contractor Arrested on Fraud ChargesAuthorities learned Robert Shannon Johnson moved his company, Expert Foundation Co., to Louisiana...when threatened w/arrest Johnson hid in a crawl space and claimed he was "looking for a level."

Monday, July 23, 2007.BuilderOnline.com: Drees Handles Buyer Objections"If a buyer does not sell their old home at the time of closing, Drees will set up an escrow account and pay the mortgage on the existing home for up to 12 months." (Buyer Beware--we've read of investors buying homes in a similar manner then not making payments. If the homeowner is still responsible for the loan and the builder is late on payments, this will hurt the home buyer's credit. Consumers planning on doing this should plan on getting competent legal advice BEFORE agreeing to these deals to make sure they are protected. --Ed.)

Sunday, July 22, 2007.CA: Families Fight Builder Over Moldy Homes Homeowners said Ryland has turned last two years into nightmare...family noticed hardwood floors lifting and a musty smell. They cut open the floor and found mold growing underneath.

Sunday, July 22, 2007.MI: Law no longer protects buyersLast month the court majority continued its assault on the Consumer Protection Act in holding that a home builder is exempt from coverage under the act because builders are otherwise "regulated."

Sunday, July 22, 2007.US: Another gem from author/home inspector Walter Jowers!Don't let your real estate agent pick your home inspector--Fox in the Henhouse! Jowers has written many good articles about problems in new home construction, e.g. "Code Red," "Caulk is Cheap," etc.

Friday, July 20, 2007.CO: Legislators respond to concernsUPDATE: Reactions to Homeowner Protection Act of 2007 which was supported by consumer advocates, and which passed this year.

Friday, July 20, 2007.FL: Ideal Homes inquiry is back to CharlotteUPDATE: FL Dept. of Law Enforcement says Ideal Homes may have broken law but state agency cannot prosecute because action took place in Charlotte County.

Thursday, July 19, 2007.US: Housing slump, lawsuits hammer Beazer HomesFacing lawsuits from customers, employees and stockholders, federal inquiries into its mortgage lending and other corporate practices and the abrupt departures of three of its top executives...

Thursday, July 19, 2007.TX: CASE OF THE CROOKED HOUSE$300,000 house built by Steve Ely valued at minus $20,000 because of cost to tear down the home. Slab foundation was out of level by 14 inches. TRCC still a builder protection agency.

Thursday, July 19, 2007.US: Fannie and Freddie Drop the BombRegulators decided it would be a good idea for underwriters to actually consider a borrowers' ability to repay the loan beyond the first year. What a concept. But despite that common sense approach, guidelines have gone largely ignored by Freddie and Fannie-- even though both of them were ordered to comply with new rules.

Wednesday, July 18, 2007.US: Contact your congressmen/women about Arbitration Fairness Act of 2007Testimony was heard on this topic by a Judiciary Sub-Committee, so that is a topic from the pull down menu you could choose. Also Business, Consumer Affairs, etc, possible topics. Please tell your elected officials what you think of mandatory arbitration clauses in consumer contracts that strip consumers of their legal rights and put businesses at an advantage in disputes. See articles/bills below on this legislation. --Ed.

Wednesday, July 18, 2007.Law Memo Arbitration InfoMay need to subscribe but info is useful if you are involved in arbitration issues

Wednesday, July 18, 2007.US: The Insurance Claim GameThe objective of the insured consumer is to have their property returned to a pre-damaged condition.
The objective of the insurance adjuster is to minimize the claim payout.

Tuesday, July 17, 2007.AZ: Selling Out their Dream HomesD.R. Horton was selling home lots while negotiating with the state dept of transportation to put a freeway on the same land. Checks are supposed to be returned but when one customer went to pick up his check during business hours the office was closed.

Tuesday, July 17, 2007.US: Arbitration is an AtrocityHigh foreclosure rates may reflect some problems w/bad builders and arbitration clauses: By Jordan Fogal

Tuesday, July 17, 2007.ADRworld.com: Bills to Limit Pre-Dispute Arbitration Under FAA Before Congress The twin bills, S. 1782 and H.R. 3010, the Arbitration Fairness Act of 2007, also would prohibit enforcement of pre-dispute agreements that would mandate arbitration of disputes arising under laws meant to protect civil rights or regulate contracts between parties of unequal bargaining power. (Articles require subscription which may be accomplished w/free trial subscription. This is a pro-arbitraton website operated by the American Arbitration Association so keep that in mind when reading articles here. HADD opposes mandatory arbitration in consumer contracts and supports the two bills named. --Ed.)

Tuesday, July 17, 2007.US; Consumer Law and Policy; a Public Citizen website: It is all about spin and PR.Consumer advocates have a hard time competing with the high dollar spin and PR that industries use to influence legislation to benefit their industry. This article is partially about how little press is being given to pending federal legislation to ban mandatory arbitration clauses in consumer contracts. --Ed.

Monday, July 16, 2007.MSN Money Central: Arbitration ties consumers' handsIf you've bought a cell phone, computer, home or car, you may have forfeited rights to sue, as cited in your contract's fine print. Consumer advocates say that's not good for buyers. ... Binding arbitration weighted in favor of business.

Monday, July 16, 2007.US: Home appraisal fraud is costing you moneyFrom illegal artificially inflated appraisals to flipping scams to builders 'incentives,' over valued property costs us all, even if we have not bought or sold a house.

Monday, July 16, 2007.US: SEN. FEINGOLD, REP. JOHNSON INTRODUCE MEASURE TO PRESERVE CONSUMER JUSTICEArbitration Fairness Act of 2007, if passed, would amend Federal Arbitration Act to make pre-dispute agreements to arbitrate employment, consumer, franchise, or civil rights disputes unenforceable. If you are new to HADD, arbitration in home and warranty contracts are common and can put consumers at a disadvantage and keep complaints secret. --Ed.

Monday, July 16, 2007.MO: MO Governor appoints foxes to guard henhouseTitle Insurance "reform" pannel made up mostly of title insurance insiders, most of the remainder from real estate industry. ONE token consumer advocate.

Monday, July 16, 2007.US: What is Predatory Lending?Predatory lending practices can leave victims homeless and defeated, stripped of self-respect and hope, their credit ruined.

Sunday, July 15, 2007.US: Homebuyer Arbitration StoriesTell Congress to Ban Mandatory Binding Arbitration! From the People Over Profits/American Association for Justice website.

Sunday, July 15, 2007.US: From builders' perspective: Arbitration Beats Going to Court - in Most Cases A contractor once said to me, "You're always pushing arbitration. I listened to you and instead of suing, I went to arbitration. It cost me thousands of dollars and took months to get a decision. (So much for the argument that arbitration is cheaper... Article is not free but may be worth buying for some readers. --Ed.)

Friday, July 13, 2007.US: Consumer rights bill introduced in CongressA bill backed by consumer groups to protect homeowners, employees and investors from mandatory arbitration agreements was introduced Thursday in the House and Senate. (HADD had two people at press conference and supports the legislation which would ban mandatory arbitration in consumer contracts. --Ed.)

Friday, July 13, 2007.US: Good court decision for consumersPublic Citizen attorney Paul Bland won an important case recently regarding class actions and arbitration...

Friday, July 13, 2007.MA; Nat'l interest: How to Approach Your Home Contractor ProblemMA attorney gives excellent advice on what you can do to document your complaint and save time and money with the lawyer. HADD has found thru its volunteers' and other homeowners' experiences over the years that the tips given here are exactly what had to be done, to get the most out of a lawyer consultation and start a good paper trail. --Ed.

Friday, July 13, 2007.US: ADR newslettersAlternative Dispute Resolution (ADR) includes arbitration which is in nearly all builder/warranty contracts as well as an incresasing number of other consumer contracts. These newsletters are from the perspective of the industry, which is valuable info to know if you are facing, or trying to avoid, arbitration.

Thursday, July 12, 2007.INMAN.com: Stewart Title accused of captive reinsurance schemeCalifornia seeking $41.6 million in fines and penalties from Stewart Title Guaranty Corp. for alleged captive reinsurance schemes with builders, lenders and title agency. Lennar, Wells Fargo, others...

Thursday, July 12, 2007.IMPORTANT FEDERAL LEGISLATION: Public Citizen Urges Support for the Arbitration Fairness Act of 2007Corporations have figured out that simply by inserting an arbitration clause in contracts for everyday consumer goods and services or employment, they can usually evade accountability...arbitration companies are beholden to big corporate players for repeat business, which creates a bias.

Thursday, July 12, 2007.CO: Colorado HOME Alliance NewsThe organization that was instrumental in passage of consumer protection law re new construction. News pg. w/current articles.

Thursday, July 12, 2007.US: Lawyers eye raters, underwriters in subprime casesU.S. class-action lawyers who have sued subprime mortgage lenders are now scrutinizing Wall Street banks that sold packages of risky loans to investors and credit analysts that served up top ratings on the securities.

Thursday, July 12, 2007.TX: Local developer facing suit about improper drainageThe petition for damages and declaratory relief states, "RSBP Developers, Inc., failed to obtain the permits and approvals that are required under federal, state and local laws and regulations relating to drainage, flood control and control of the quality and quantity of storm water discharges and runoff from the construction site."

Thursday, July 12, 2007.OK: Flooded property ignites old fightNorman resident Pam Jennings told everyone who would listen that properties in her area would flood if an adjancent development occurred as proposed. And now she says it’s happening.

Monday, July 09, 2007.AL: Strictly enforce new codeStricter standards only work if they are enforced ... An industry study concluded that damages in Florida from Hurricane Andrew in 1992 would have been up to 55 percent less had counties strictly enforced codes.

Sunday, July 08, 2007.PA: Monroe home foreclosures through the roofBy David Pierce, who has covered ongoing Poconos real estate fraud for years. Despite action by state attorney general, builders who were engaged in inflated appraisals, falsified documents, etc, are still allowed to build, and no compensation for the ripped off home buyers.

Saturday, July 07, 2007.FL; Nat'l interest: 'Great deals' were really snow jobsJim Metts, a handyman/thespian whose greatest skill seems to be separating people from their money, using the aisles of Home Depot and Lowe's as his stage.

Saturday, July 07, 2007.NY: Contractor evades taxes on illegal laborJay Kuhn, the head of Kuhn Brothers Construction just the start of federal investigation into illegal practices in construction industry that cheat government out of tax revenue

Friday, July 06, 2007.US: When Building Green Ain't so GreenReasons why many new homes--even if they are claimed to be "green"--are just marketing hype and not actually more friendly to the environment.

Tuesday, July 03, 2007.FL: Builders PAC ties contributions to fee capThe Florida Home Builders Association threatened on its Web site Monday to withhold contributions to incumbent legislative candidates who do not sponsor legislation it wants on impact fees.

Tuesday, July 03, 2007.CA: Contractors group builds consensusBiggest challenge to licensed contractors livelihood is rapidly increasing number of contractors operating without licenses.

Tuesday, July 03, 2007.US: Housing data may mask crisis' scopeMany of the incentives that sellers are using to lure buyers -- including cash rebates -- aren't being included. That suggests prices may be falling faster in many markets than is now being reported.

Monday, July 02, 2007.IL: City kept mum on potential home defectsThe structural defects first surfaced at a 115-home luxury development in the Bridgeport neighborhood known as Bridgeport Village. A subcontractor alerted city officials, who commissioned an engineering study that found the plans for the houses did not meet the building code.

Monday, July 02, 2007.WA: Lobbying is big businessState's builders spent more than $100,000 lobbying lawmakers this year to help stave off a bill that would have given homeowners more ability to sue if their new house had defects.

Sunday, July 01, 2007.CA: Lodi homeowners find dream neighborhood not so charmingHome buyers bought at worst time; were also told by KB Home that the builder was not selling to investors: 60 of the 80 homes in his subdivision are now either for sale, in foreclosure or for rent.